Penns Woods Bancorp Inc (PWOD) Reports Q3 2023 Earnings
Net income for the three and nine months ended September 30, 2023 was $2.2 million and $11.1 million, respectively.
Basic and diluted earnings per share for the same periods were $0.31 and $1.56, and $0.31 and $1.53, respectively.
Net income from core operations was $2.3 million and $11.2 million for the three and nine months ended September 30, 2023, respectively.
Total assets increased to $2.2 billion at September 30, 2023, an increase of $271.4 million compared to September 30, 2022.
On October 25, 2023, Penns Woods Bancorp Inc (NASDAQ:PWOD) released its earnings report for the third quarter of 2023. The company reported a net income of $11.1 million for the nine months ended September 30, 2023, resulting in basic and diluted earnings per share of $1.56 and $1.53, respectively.
Financial Performance
The company's net income for the three and nine months ended September 30, 2023 was $2.2 million and $11.1 million, respectively. This represents a decrease compared to the same periods in 2022, which saw net incomes of $5.3 million and $12.9 million, respectively. The decrease in net income was primarily due to a significant increase in interest expense, driven by the rate increases enacted by the Federal Open Market Committee (FOMC).
Income Statement Highlights
The company's net interest income for the three and nine months ended September 30, 2023 was $13.3 million and $41 million, respectively. This represents a decrease compared to the same periods in 2022, which saw net interest incomes of $15.5 million and $42.2 million, respectively. The decrease in net interest income was primarily due to an increase in the rate paid on interest-bearing liabilities.
Balance Sheet Summary
As of September 30, 2023, the company's total assets stood at $2.2 billion, an increase of $271.4 million compared to September 30, 2022. Net loans increased by $260.1 million to $1.8 billion during the same period. The company's shareholders' equity also increased by $10.1 million to $174.5 million at September 30, 2023, compared to September 30, 2022.
Cash Flow Statement Overview
The company's cash and cash equivalents as of September 30, 2023 stood at $35.6 million, a slight decrease compared to $36.9 million as of September 30, 2022. The company's net cash provided by operating activities for the nine months ended September 30, 2023 was not disclosed in the earnings report.
Future Outlook
Despite the challenges posed by the significant increase in interest expense, Penns Woods Bancorp Inc (NASDAQ:PWOD) remains committed to its growth strategy. The company will continue to focus on commercial loan growth and indirect auto lending, while also maintaining a strong emphasis on improving its loan portfolio credit metrics.
Explore the complete 8-K earnings release (here) from Penns Woods Bancorp Inc for further details.
This article first appeared on GuruFocus.
